Senate
File
2399
-
Introduced
SENATE
FILE
2399
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
SF
2379)
A
BILL
FOR
An
Act
exempting
from
the
Iowa
individual
income
tax
the
amount
1
of
income
resulting
from
prize
money
and
medals
received
2
from
competition
in
the
olympic
or
paralympic
games,
and
3
including
retroactive
applicability
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
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2399
Section
1.
Section
422.7,
Code
2018,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
18.
a.
Subtract,
to
the
extent
included,
3
the
amount
of
income
resulting
from
the
value
of
any
medal
4
awarded
in,
or
any
prize
money
received
from
the
United
States
5
olympic
committee
on
account
of,
competition
in
the
olympic
6
games
or
paralympic
games.
7
b.
The
subtraction
in
paragraph
“a”
does
not
apply
to
a
8
taxpayer
whose
net
income
exceeds
one
million
dollars
for
the
9
tax
year,
or
five
hundred
thousand
dollars
in
the
case
of
a
10
married
person
filing
separate
returns
or
separately
on
a
11
combined
return.
12
Sec.
2.
RETROACTIVE
APPLICABILITY.
This
Act
applies
13
retroactively
to
January
1,
2018,
for
tax
years
beginning
on
14
or
after
that
date.
15
EXPLANATION
16
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
17
the
explanation’s
substance
by
the
members
of
the
general
assembly.
18
This
bill
relates
to
the
taxation
of
medals
or
prize
money
19
received
from
competition
in
the
olympic
or
paralympic
games.
20
For
federal
income
tax
purposes
pursuant
to
Internal
Revenue
21
Code
§74(d),
enacted
by
Congress
in
2016,
income
resulting
from
22
the
value
of
any
medal
awarded
in,
or
any
prize
money
received
23
from
the
United
States
olympic
committee
on
account
of,
24
competition
in
the
olympic
games
or
paralympic
games
is
exempt
25
from
the
federal
income
tax
for
individuals
whose
adjusted
26
gross
income
does
not
exceed
$1
million
($500,000
for
married
27
individuals
filing
separately).
However,
Iowa
has
not
coupled
28
with
(enacted)
this
federal
provision
for
purposes
of
the
Iowa
29
individual
income
tax.
30
The
bill
exempts
from
the
Iowa
individual
income
tax
the
31
amount
of
income
resulting
from
the
value
of
any
medal
awarded
32
in,
or
any
prize
money
received
from
the
United
States
olympic
33
committee
on
account
of,
competition
in
the
olympic
games
or
34
paralympic
games
to
any
taxpayer
whose
net
income
does
not
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2399
exceed
$1
million
($500,000
in
the
case
of
a
married
person
1
filing
separate
returns
or
separately
on
a
combined
return).
2
The
bill
applies
retroactively
to
January
1,
2018,
for
tax
3
years
beginning
on
or
after
that
date.
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